{"id":15389,"date":"2024-10-17T03:14:34","date_gmt":"2024-10-17T03:14:34","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15389"},"modified":"2024-10-17T03:14:34","modified_gmt":"2024-10-17T03:14:34","slug":"aud-volatile-amid-strong-usd-and-china-concerns","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/aud-volatile-amid-strong-usd-and-china-concerns\/","title":{"rendered":"AUD Volatile Amid Strong USD and China Concerns"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>AUD\/USD is trading near 0.6690, after bouncing from a low of 0.6654.<\/li>\n\n\n\n<li>U.S. dollar strength and Chinese economic concerns continue to influence price movements.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">The AUD\/USD pair opened at <strong>0.6698 <\/strong>and saw an <strong>immediate decline<\/strong> to test the <strong>0.6654 <\/strong>level, where it found support.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-30-1024x446.jpeg\" alt=\"\" class=\"wp-image-15390\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: AUD\/USD surges to 0.66973, breaking from consolidation with rising bullish momentum amid shifting economic sentiment, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><em>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From this level, we can see a <strong>sharp bounce in price<\/strong> back towards the <strong>0.6697 <\/strong>region, currently trading slightly below the 0.6700 psychological level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the pair is still <strong>struggling to break<\/strong> past the <strong>0.6726 <\/strong>resistance level set by previous sessions, highlighting the importance of this region for any further upside movement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The MACD (12, 26, 9) indicator shows early signs of a <strong>potential bullish crossover<\/strong>, with the MACD line moving above the signal line, suggesting possible upward momentum in the near term.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looking ahead, the <strong>key support<\/strong> to watch remains at <strong>0.6650<\/strong>, as the pair has shown resilience around this level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If AUD\/USD breaks below this area, the next major support lies around <strong>0.6610<\/strong>. On the upside, the <strong>0.6726 <\/strong>level continues to act as a ceiling, and a break above this could lead to <strong>further gains<\/strong> towards <strong>0.6750<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">China Economic Struggles Fuel Uncertainties<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Australian dollar&#8217;s movement is closely tied to China&#8217;s economic performance, as China remains Australia&#8217;s largest trading partner.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Recent data and developments from China have added uncertainty to the market. Concerns about <strong><a href=\"https:\/\/www.btimesonline.com\/articles\/169248\/20240916\/china-s-economic-struggles-deepen-new-data-highlights-weakness-across-key-sectors.htm\">China\u2019s slow recovery<\/a><\/strong>, particularly in its manufacturing and real estate sectors, have weighed on the Australian dollar.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">China said it will expand a program to support \u201cwhite list\u201d property projects \u2014 a plan to ensure unfinished homes are delivered to buyers \u2014 $562 billion, adding more ammunition to halt the sector\u2019s decline <a href=\"https:\/\/t.co\/YmLuEr66mk\">https:\/\/t.co\/YmLuEr66mk<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1846742515757588764?ref_src=twsrc%5Etfw\">October 17, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The recent holiday break in China has delayed some economic data, but early signs suggest a slowing of key indicators, including industrial production and retail sales growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">USD Strength Presses Aussie Dollar<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Adding to this, the U.S. dollar has strengthened on the back of strong economic data.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Wall Street ended higher, with both the S&amp;P 500 and the Dow posting fresh record finishes, as investors bought into technology stocks ahead of a busy week packed with corporate earnings and crucial economic data <a href=\"https:\/\/t.co\/RocmTGEBoF\">https:\/\/t.co\/RocmTGEBoF<\/a> <a href=\"https:\/\/t.co\/3oTPsiyXCQ\">pic.twitter.com\/3oTPsiyXCQ<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1845985441444475126?ref_src=twsrc%5Etfw\">October 15, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The Federal Reserve has kept its stance on further rate cuts cautious, despite rising inflation. This has put upward pressure on the greenback, limiting the upside potential for AUD\/USD.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">U.S. retail sales data showed better-than-expected numbers, pushing the dollar index higher.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Further complicating the outlook, risk sentiment has taken a hit from <strong><a href=\"https:\/\/www.politico.com\/news\/2024\/10\/03\/the-middle-east-tensions-are-hot-but-oil-markets-are-cool-00182273\">global geopolitical tensions<\/a><\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Concerns about an escalation in the Middle East, particularly with ongoing conflicts in Israel and Gaza, have heightened demand for safe-haven assets like the U.S. dollar and gold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The risk-off environment has resulted in weaker commodity currencies, including the Australian dollar.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What to Watch Next<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In the coming sessions, traders should closely monitor U.S. economic data releases, including the upcoming U.S. jobless claims and industrial production figures, as they could provide further insights into the Fed\u2019s rate policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/dollar-rises-china-stimulus-shifts-fed-outlook\/\">Dollar Rises, China Stimulus Shifts Fed Outlook<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, China\u2019s economic data, specifically updates on industrial production and retail sales, will be crucial in determining the AUD\u2019s trajectory.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the AUD\/USD still within a tight range, traders should keep a cautious stance and watch for any breakout beyond the 0.6726 resistance level or a break below the 0.6650 support.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a><\/strong><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>AUD\/USD remains volatile as U.S. dollar strengthens and China&#8217;s economic concerns weigh on market sentiment. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[47,39,12],"class_list":["post-15389","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-aud","tag-aussie","tag-forex"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15389"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15389\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}